What OASDI Means on Your Paystub (and Why You Pay It)
OASDI is just the official name for Social Security tax.
It’s the part of your paycheck that helps fund retirement, disability, and survivor benefits for millions of Americans — including you one day.
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What Is OASDI?
OASDI stands for Old-Age, Survivors, and Disability Insurance. It’s the formal name for the Social Security program, and it’s required by law.
Every paycheck, your employer withholds 6.2% of your wages for OASDI. They also pay another 6.2% on your behalf. Together, that’s 12.4% that goes straight into the Social Security trust funds managed by the U.S. Treasury.
Where Does the Money Go?
Your OASDI tax helps pay:
- Monthly retirement benefits for people who’ve worked and earned credits.
- Disability income if someone becomes unable to work long-term.
- Survivor benefits for the families of deceased workers.
Think of it as a shared safety net. You pay in while you’re working, and later, you or your family may receive benefits when you retire or need support.
How Is OASDI Calculated?
The math is simple:
6.2% of your gross pay up to the annual wage base limit.
For 2025, that limit is $168,600 — meaning income above that isn’t taxed for OASDI.
Example:
- If you earn $1,000 per week, your OASDI deduction is $62.
- Your employer pays another $62.
Why It Matters for Your Future
OASDI is your contribution to Social Security credits. You earn up to four credits per year, and most people need 40 credits (about 10 years of work) to qualify for retirement benefits.
When you retire, the amount you’ve paid in — along with your lifetime earnings — determines your monthly Social Security check.
Example: OASDI on a Paystub
Let’s say you earn $4,000 a month. Your paystub might show:
| Line Item | Description | Amount |
|---|---|---|
| OASDI | Social Security Tax (6.2%) | $248.00 |
| Medicare | Hospital Insurance (1.45%) | $58.00 |
| Federal Tax | Based on W-4 | Varies |
If you’ve ever glanced at your paystub and felt lost in the alphabet soup of deductions, you’re not alone. Beyond OASDI, there are dozens of other short codes worth knowing. Check out our guide to paystub abbreviations for a full breakdown of what each one means.
See Your OASDI in Action
Understanding OASDI isn’t just about decoding a line on your paycheck — it’s about knowing where your money goes and how it supports your future. Every OASDI deduction helps fund Social Security, ensuring you’ll have benefits waiting when you retire.
If you want to see exactly how those deductions work on your own paycheck, try the FormPros paystub generator — it instantly creates accurate, professional paystubs with all the right tax details built in. You can also check out our guide on How to Read a Paystub to learn what every line means and how to spot your Social Security contributions.
With FormPros, you can take the guesswork out of paystubs and understand your finances with confidence — one paycheck at a time.
What OASDI Means on Your Paystub (and Why You Pay It) FAQs
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How do I find my OASDI on my paystub?
Look for a line labeled OASDI or Social Security. It’s usually grouped with federal tax and Medicare.
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Is OASDI refundable?
No — it’s not refundable. It’s a contribution toward your future Social Security benefits.
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What if I earn over the limit?
Once you reach the annual wage base, your employer automatically stops withholding OASDI for the rest of the year.
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Do self-employed people pay OASDI?
Yes. They pay the full 12.4% themselves through the self-employment tax.
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Can I opt out of OASDI?
Not unless you qualify for a rare exemption (like certain nonresident aliens or government workers under separate systems).
